Chinese was replaced in Russia by automakers from EU
2022.12.08 08:09
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Chinese was replaced in Russia by automakers from EU
Budrigannews.com – Chinese brands make up almost a third of Russia’s automobile market. This sector more than any other demonstrates China’s growing importance to the economy in the wake of Western companies leaving the country.
As a result of Western sanctions restricting Russia’s access to certain materials, falling demand, and high prices, new sales of passenger cars and light commercial vehicles (LVC) are down almost 61% year-over-year.
However, according to data from the Russian analytical agency Autostat, the market share of Chinese-branded passenger cars like Haval, Chery, and Geely has increased to 31.3% from 9.6%, rising to 16,138 units in November, almost double the 8,235 units sold in January.
Graphic: According to a report released on Tuesday by the Association of European Businesses (AEB), Russian sales of new passenger cars and light commercial vehicles (LCVs) totaled 46,403 units in November. This year’s total sales are expected to reach approximately 600,000 units.
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According to Russian automotive analyst Vladimir Bespalov, “the market is divided between the Russian and Chinese car industries, as there is little production of Western car brands and few imports.”
Chinese are also taking over the Western market with prices above 2.5 million roubles, and Russian cars satisfy demand at lower prices, up to about 1.5 million roubles ($23,961).
In one high-profile case, a Chinese vehicle is taking on the appearance of Russian one. At the brand’s relaunch last month, engine parts from China’s JAC, whose design, engineering, and platform are being used to revive the Soviet-era Moskvich, were clearly visible.
Moskvich stated that it is collaborating with a foreign partner, but it did not specify which one. A request for comment from JAC was not met.
After Russia sent tens of thousands of troops into Ukraine in February, the majority of Western automakers, who have fought domestic automakers for market share since they started building factories in Russia in the early 2000s, stopped making cars.
The Moskvich is made in a plant that Renault, a French automaker, acquired (EPA:), Nissan, however (OTC:), Ford and Mercedes are two of the other companies that have left Russia.
Bespalov stated that Chinese producers, including Moskvich, could account for approximately 35% of sales in Russia next year if the economic situation remains unchanged, estimating that the market would recover to 800,000 units.
In terms of money, the share could exceed 40% of what he anticipates will be a market worth 1.5 trillion rubles in 2023.
China’s sales in Russia pale in comparison to those in its own domestic market, where they were approximately 35 times higher in November than in Russia.
According to China’s Association of Automobile Manufacturers, Russia was the sixth-largest export destination for Chinese automotive products, including vehicles and parts, for the first ten months of the year, accounting for 3.9%, virtually unchanged from the previous year.
